Member Article

‘Mega Trends’ leading chemicals, materials and food industries

Four ‘Mega Trends’ are said to be driving the chemicals, materials and food industries in 2012, research from Frost & Sullivan have suggested.

The forecast points towards green products like bioplastics, high demand for innovative chemicals and materials, and industry consolidation, as dominant trends across the chemicals and materials industry in Europe.

Weight management, heart and digestive health will be the high growth sectors in the food and beverage markets.

Research Director Dr Leonidas Dokos said: “The four Mega Trends of low carbon economy, health and wellness, functionality and performance, and globalisation define the developments in the chemicals, materials and food industry.

“The food, mobility and construction markets remain core developments for 2012 exhibiting growth overall driven by the emerging economies.”

According to the Frost & Sullivan report, China, Brazil and Russia are top priorities for construction and utilities players, while for transportation players, the focus is on China, India and Brazil.

Particularly the Indian demand for chemicals will grow on the back of massive growth in end-user industries such as automotive production, and China’s development of green technology will draw in strong chemicals investment.

The Western European market remains the priority for EU based manufacturers over other regions.

North America and Eastern Europe follow as the next priority while Russia presents significant opportunities across construction, water treatment, transportation and PPE.

Latin America is identified as the hub for bioethanol and the forecast points to increasing focus in oil and gas exploration with restructure in the state petrochemicals companies.

Brazil, in particular, is forecast to become a major centre of supply for biobased feedstocks and will be the construction hot spot until 2016.

The food and beverage suppliers are looking at China, India and Brazil as emerging markets, and focus on bakery ingredients continues in Europe.

Elsewhere, the report suggests that targeted consolidation in the chemicals and materials industry continues as one of the main highlights of recent years, but the number of closed deals will be smaller due to cash constrictions.

This was posted in Bdaily's Members' News section by Tom Keighley .